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Time for the City of Barrie to take action on growing rental issue



Rental housing has traditionally been built in Ontario when there is financial incentive to do so. When there isn't, demand continues to increase but availability shrinks. If you go back to the 60's and early 70's there were allot of new apartment buildings going up all over Ontario. At that time there were Barrie income propertymany tax incentives and capitol cost write-offs along with assistance programs from CMHC for developer/landlords that disappeared around 1972 and when they did, apartment construction levels nose dived and have never recovered.

As rental demands in the seventies climbed as a result of little new construction and a growing population, so did the rents landlords could command. This created financial pressures on individual renters but is to be expected in an industry whose existence rises and falls with supply-and-demand and return-on-investment. Rather than revive those government incentives to encourage new building and accommodate the increasing demand for rental housing, the government of the day decided to implement rent control regulations.

The net effect of that over time has been a further decrease in new rental construction and unit availability as purchase and operating costs climbed at greater rates than could be compensated through the annual rent increases the government would allow. Landlords increasingly began converting rental buildings to condos and rental homes when sold off were more likely to become owner occupied as ROI numbers diminished.

At the municipal level, a window opened up for just a couple years in the early nineties under the NDP government that allowed second suites to be created in Ontario homes. The power to allow second suites was passed back to the municipalities in 1994 and Barrie has not granted permits for second suites in existing homes since that time. A grandfathering clause allowed second suites that were registered during that short time to continue . Most of those exist in older areas of Barrie as more than half the residential areas in Barrie today did not exist yet in 94.

One topic our municipal council would rather avoid but is forced to face again and again is whether to allow second suites in residential homes. A number of homeowners do not want to see them allowed for fear of their neighbourhoods deteriorating as a worst case result. Abiding by the wish of those constituents is the safe road politically for a Councillor or Mayor to stay on.

At the same time the number of unregistered second suites in Barrie grows and is many times greater than the number of registered ones. The combination of a rising population and strained economy will insure these numbers continue to escalate with time.

The City is obligated to respond if a complaint is lodged about a suspected illegal apartment in Barrie but there is no "illegal apartment squad" working out of city hall trying to shut them all down. If such an undertaking were ever to occur, the reality the City is well aware of is that there would suddenly be many thousands of new homeless people and hundreds if not thousands of people who currently rely on a second suite income who would be forced to sell.

If the City were to step off of the safe path of least resistance and face the reality head on by finding a manageable solution whereby qualifying property owners in Barrie could provide second suites that comply with current fire and safety regulations
, far more good than grief would come if it.

There would be less of a gray market housing economy and fewer people living in apartments that don't meet with building code/safety requirements in Barrie. Instead the city would begin to generate much needed revenue which benefits us all. As suites were registered they would be required to meet with fire and safety regulations which benefits us all and saves on City resources.

As demand and availability of rentals in Barrie stabilized so too would rents. Increased competition and availability tends to keep market values in check.

A larger segment of the population, particularly young families starting out would find themselves in the financial position of being able to purchase a home if they knew they could offset the month to month costs by renting out an upper level or basement suite.

That in itself stimulates the local economy. If a family renting locally today purchased a home and added a legal second suite this would create a vacancy when they move and another in the home they buy.

The Mayor and Council are vying to have Laurentian University come to Barrie. Many of the 2500 - 3000 students and up to 300 faculty are going to require rental accommodations. If the city wants a university, they are going to have to show in a very significant way that they are willing to make the tough but responsible decisions that will allow it to meet the increased housing demands that come along with it.

Something else that we won't be able to ignore for much longer is a population that is aging faster than we are creating living spaces suited to accommodate them. Seniors housing is sparse and costs two, three or more times what an apartment in a home costs.

Many people have the space and the desire to create an independent in-law suite for a parent, family member or a senior age family friend rather than have them go into retirement homes. This is a convenience the City of Barrie should be allowing not denying families living in the community.

Barrie needs to look to the future. It isn't an all or nothing scenario. There are ways to moderate the number of units so we don't ever see the worst case scenarios that some existing home owners fear. To do nothing wont serve the growing demand and is only going to fuel the growing gray market apartment economy in Barrie while our community as a whole suffers for it.
Posted Saturday Jan 07